Yes, budgeting and saving are forms of self-care. Here’s how to practise it

Published on 30th September, 2020 at 03:18 pm

With the spotlight on self-care in recent years, it’s important to know how budgeting and saving form a significant part of this. Read on for expert insights for how to look after your finances and, in turn, yourself.

What’s the deal with self-care?

In essence, ‘self-care’ has become the term for a practice that we normally wouldn’t have thought twice about, or even given a name, before our schedules became packed and the pressure was ladled on. “In the ever-changing world of competition and work performance, where downtime in the workspace such as a tea break or lunch break has become a luxury that most employees tend to bypass, the concept of self-care became known,” says Hestie Endrödy-Younga, a clinical psychologist. “Even working from home or being a housewife has become stressful due to the high expectation of society to be the best in everything you do,” she continues.

While some may frown upon or dismiss the concept, assuming it’s little more than some pampering and indulgence, there’s something to be said for the true and vital mental benefits it can offer a person. “Having time for yourself during the day should be a natural part of everyday life,” says Endrödy-Younga. And the risks of skipping it are nothing to be brushed off. “If this is neglected, the body and mind never get a chance to replenish and re-energise. As a result, people develop stress-related illnesses such as depression, respiratory illnesses, heart conditions, inflammatory diseases, cancer and burn-out, to name but a few,” cautions Endrödy-Younga. Ultimately, self-care leads to an overall sense of wellbeing.

According to Endrödy-Younga, self-care is achieved by creating a balance in your week based on four pillars.

• Body: exercise, rest, regular meals, enough sleep.
• Mind: stimulating hobbies, learning a new skill etc.
• Soul: spiritual activities and connection with your spiritual community.
• Social/psyche: spending time with friends and family (an opportunity for laughter and sharing your life experiences).

“Once you’ve achieved this balance, you are able to feel more in control, deal with stressful situations better and live a more mindful life,” she says.

Financial stress: a serious health hazard

In mid-2019, debt management provider DebtSafe conducted their DebtSafe Financial Reality Survey, revealing that financial strain or stress had influenced 56% of respondents’ stress levels. To add to this, 21% of respondents said the biggest financial worry they experienced was not being able to save for anything, and a quarter were concerned about income not keeping up with inflation. No doubt, financial and mental wellness are intrinsically linked.

Fast-forward to 2020’s economic challenges, and the link further intensified. The South African Depression and Anxiety Group (SADAG) conducted a survey on COVID-19 and mental health near the start of lockdown, and unsurprisingly, of the 1 214 respondents, nearly half identified financial stress and pressure as their main challenge during lockdown.

There’s also a flipside to this, resulting in a vicious cycle where poor mental health can, in turn, contribute to negative economic effects. Research conducted by the London School of Economics confirms this, showing that depression costs South Africa more than R232 billion a year in lost productivity. This mainly accounts for absenteeism and continuing to attend work while unwell.

Suffice it to say, in taking care of ourselves, our financial habits cannot be overlooked in our pursuit of good mental health. Hence, budgeting and saving fall under the ‘mind’ pillar, involving discipline, learning and forming health habits. “Awareness of your tendencies to avoid or postpone future planning of your finances eventually leads to stress and anxiety,” says Endrödy-Younga. “Planning your financial future will naturally lead to a feeling of security and wellbeing.”

#1: Draw up the bigger picture

“Financial planning is about making sure that you plan ahead,” says Sechaba Bolofo, a financial planner at Lineo BlueStar, underwritten by Sanlam. “You need to protect and create your wealth, and budgeting is the first step to any good financial plan.” If you do it properly, accounting for every rand you earn, you’ll set yourself up for wise spending, which should keep you on track to your financial goals. “Before you spend, you’ll ask yourself, ‘Did I budget for this purchase? Do I need this item, or am I spending recklessly?’” adds Sechaba. This will push you to stay on track.

Want to budget, but don’t know where to start? With this guide and template, you’ll be sorted. Or book a meeting with a Sanlam financial planner today to start the conversation.

#2: Make a list of your debt

Facing the full, unedited picture of your debt is probably the last thing that comes to mind when you think ‘self-care’, but it could be the most freeing item on this list. Why? Well, once you know how much money doesn’t truly belong to you, you can work towards closing that gap and begin building wealth you can keep and grow.

A financial planner will also take your current debt into account in your plan to reach financial freedom. Instead of hiding it out of embarrassment (you’re not alone), be prepared to lay all your debt on the table, so that you can jointly agree on which amounts need to be eliminated first. These are usually the smaller debts with the highest interest rates. Once you’ve bid it farewell, you can tackle the larger debts.

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#3: Plan for the unexpected…

Worries about the ‘what ifs’ keeping you up at night is a sure way to lose valuable rest (i.e. not good for self-care), and leave you frazzled. Avoid the mental overdrive by discussing your own unique risks – whether associated with your ability to earn an income or provide for your family, or in the event of your car or house being damaged – with a qualified financial planner. “You need to protect yourself and your family by making sure that you have the appropriate solution for life-changing events,” says Bolofo. “Engage with your financial planner regularly to make sure you are prepared for unplanned events.”

Having the right cover in place means you can rest assured that your finances won’t take the knock of unforeseen events. Reality Health and Plus members get up to 30% discount on their life cover, income protection, disability cover and more. Learn more here.

#4: … and the expected

Don’t allow life’s joy-filled occasions like birthdays, anniversaries, festive holidays and more to be overshadowed by money stress. As important as planning for life’s curveballs is planning for the expected. “You need to have savings for planned events like holidays, graduations, birthdays etc,” says Bolofo. “Always plan for [big purchases] so that you can avoid any impulsive buying and make purchases with a clear state of mind.” So, if you’ve got your eye on a new set of wheels for next year’s birthday, for example, start getting that deposit in place now to lower your monthly payments, and not be in a position of taking out a loan just to fund the deposit.

Use this savings tool to find out how much you should put away each month to reach your financial goals.

#5: Reward yourself

Where’s the fun in abiding to a budget without treating yourself for staying disciplined? Self-care should also involve a treat of some sort as a reward for sticking to your financial guns. “You only live once, so don’t forget to reward yourself for good spending habits too,” says Bolofo. It goes without saying that your treat should be budgeted for, but don’t let that put you off from skipping this important part of self-care for your financial and mental health.

When it comes to financial self-care, a qualified financial planner is the perfect expert to enlist. They can help you plan for happy occasions and rainy days, which should ultimately have a positive impact on your mental health. Book a meeting with one here.